Campaign Finance

Tennessee: “Tennessee Sued Over PAC Contributions ‘Blackout Period’ Before Elections” by Joey Garrison for The Tennessean

Vermont: “Vermont Campaign-Finance Limits Survive Appeal” by Nick Rummell for Courthouse News Service

Elections

National: “Campaigns Enter Texting Era with a Plea: Will U Vote 4 Me 🙏??” by Kevin Roos for New York Times

Washington D.C.: “The Voters Approved It. Should Lawmakers Erase the Result? In D.C., a Debate About Democracy.” by Reis Thebault for Washington Post

Ethics

Alabama: “Alabama’s ‘Beach House Sheriff’ Is Selling His Beach House” by Connor Sheets for AL.com

California: “San Diego Council Sets Up Ballot Measure to Double the Salary for Council, Mayor” by David Garrick for San Diego Union Tribune

California: “Vindicated Colonies Corruption Figure Sues San Bernardino County, DA in Federal Court for $40 Million” by Joe Nelson for San Bernardino Sun

Michigan: “Macomb Politician Gets 20 Months in Prison for Corruption” by Robert Snell for Detroit News

New York: “Ethics Commissioner Wants Option to Make Status of Probes Public” by Chris Bragg for Albany Times Union

Lobbying

National: “Mueller Refers Foreign Agent Inquiries to New York Prosecutors” by Erica Orden (CNN) for MSN

National: “Lobbying Groups Join Fight Against Sexual Harassment” by Katherine Tully-McManus for Roll Call

Campaign Finance

Arizona: “Secretary of State Michele Reagan Again Delays Arizona Campaign Website Planned for 2015” by Dustin Gardiner for Arizona Republic

Michigan: “Former Michigan Secretary of State, Husband Agree to Pay $66K Fine” by Todd Spangler for Detroit Free Press

Minnesota: “Minnesota Political Donors Benefiting from State Campaign Refund Program” by Eric Chaloux for KSTP

Missouri: “Judge Strikes One St. Louis County Ballot Question on Campaign Contributions, but Other Two Are OK” by Jeremy Kohler for St. Louis Post-Dispatch

Pennsylvania: “Lehigh County Pay-to-Play Law Crimps Donations from Political Candidates’ Own Parties” by Tom Shortell for Allentown Morning Call

Elections

National: “Facebook Has Identified Ongoing Political Influence Campaign” by Nicholas Fandos and Kevin Roose for MSN

Ethics

National: “FEMA Personnel Chief Harassed Women, Hired Some as Possible Sexual Partners for Male Employees, Agency’s Leader Says” by Lisa Rein (Washington Post) for MSN

Illinois: “Company Used Convicted Chicago Schools Chief in ‘Highly Unethical’ Work to Win Millions in CPS Business, Watchdog Finds” by Juan Perez Jr. for Chicago Tribune

Lobbying

National: “Foreign Lobbying Overhauls Stall as Manafort Goes to Trial” by Kate Ackley for Roll Call

Campaign Finance

National: “Liberal Activists Embrace ‘Dark Money’ in Supreme Court Fight” by Michelle Ye Hee Lee (Washington Post) for Everett Herald

Elections

Georgia: “In Georgia Governor’s Race, a Defining Moment for a Southern State” by Kevin Sack and Alan Blinder for WRAL

Ethics

California: “Combatting Corruption: How effective is the political watchdog Jerry Brown helped create?” by Laurel Rosenhall and Robbie Short for CALmatters

New Mexico: “Investigators Move Sexual Harassment Case Against Legislator Forward” by Dan McKay and Dan Boyd for Albuquerque Journal

Lobbying

National: “From Six Homes to a City Jail: Paul Manafort, who redefined lobbying, faces trial” by Rachel Weiner and Tom Hamburger (Washington Post) for The News-Times

National: “At Prayer Breakfast, Guests Seek Access to a Different Higher Power” by Kenneth Vogel and Elizabeth Dias (New York Times) for WRAL

National: “EPA Chief Andrew Wheeler’s Past Lobbying Ties Attract Scrutiny” by Juliet Eilperin (Washington Post) for MSN

Alaska: “Ethics Reform Bill Signed into Law” by Staff for Cordova Times

On July 25, Sen. Michael Bennet and Rep. John Sarbanes introduced legislation aimed to make several changes to the Lobbying Disclosure Act of 1995 (LDA).

Currently, part of the LDA’s requirements for determining whether an individual is required to register as a federal lobbyist include if he or she makes two or more lobbying contacts and if his or her lobbying activities constitute at least 20 percent of the individual’s time in services for a client over any three-month period. The proposed legislation, introduced as two identical bills in both houses of Congress as Senate Bill 3274 and House Bill 6533, would require registration if a lobbyist makes more than one lobbying contact over a two-year period and would eliminate the 20 percent time threshold used in determining whether registration is required.

This bill would also require individuals who provide paid strategic advice in support of a lobbying contact with a government official to register as lobbyists even if they do not directly make the contact, prohibit lobbyists from soliciting, bundling or providing campaign contributions above a total equal to an individual’s campaign contribution limit, and prohibit members of Congress, senators, and candidates for Congress or the Senate from soliciting campaign contributions from lobbyists when their respective bodies are in session.

Additionally, the legislation would no longer permit foreign agents from avoiding registration under the Foreign Agent Registration Act (FARA) by registering under the LDA.

More information is available from the press releases of Sen. Bennet and Rep. Sarbanes, and from a policy summary of the Democracy Reform Task Force, of which Sarbanes is the Chairman.

Elections

Missouri: “McCaskill, Vulnerable Democrat Running for Re-election, Targeted in Russian Hacking Attempt” by Ellen Nakashima (Washington Post) for Chicago Tribune

North Carolina: “‘I Have Not Been Involved,’ NC Supreme Court Justice Says of Bill Targeting Opponent” by Wil Doran for Raleigh News and Observer

West Virginia: “West Virginia Official Rejects Blankenship’s Third-Party Senate Bid” by Jordain Carney for The Hill

Ethics

National: “Cohen Says Trump Approved Trump Tower Meeting with Russians” by Darren Samuelsohn, Quint Forgey, and Andrew Restuccia for Politico

National: “Allen Weisselberg, Trump Organization’s Finance Chief, May Be Questioned” by Maggie Haberman, Michael Schmidt, and Sharon LaFraniere (New York Times) for MSN

Florida: “Jack Latvala Cleared of Criminal Charges by State Prosecutor” by Steve Bousquet, Mary Ellen Klas, and Emily Mahoney for Tampa Bay Times

New York: “Sheldon Silver, Ex-Assembly Speaker, Gets 7 Years in Prison for Corruption Conviction” by Jon Campbell for Rochester Democrat and Chronicle

Lobbying

Maine: “Lawmakers, Lobbyists to Get Annual Anti-Harassment Training” by The Associated Press for Albany Times Union

Missouri: “Divided KC Council Defeats $5 Gift Proposal – ‘We’re Doing Fine’” by Bill Turque for Kansas City Star

State and Federal Intern Greta Conley delivers the fastest 2 minutes in government relations news in this weeks NYCU Video Digest!

Federal:

In Ruling Against Trump, Judge Defines Anticorruption Clauses in Constitution for First Time
WRAL – Sharon LaFraniere (New York Times) | Published: 7/25/2018

A federal judge rejected President Trump’s effort to block a lawsuit that alleges he is violating the Constitution by continuing to do business with foreign governments. The state of Maryland and the District of Columbia claim Trump is violating the Emoluments Clause of the Constitution, which prohibits elected officials from receiving gifts or benefits from foreign governments without congressional approval. In the first judicial opinion to define how the meaning of the Constitution’s anticorruption clauses should apply to a president, U.S. District Court Judge Peter Messitte said the framers’ language should be broadly construed as an effort to protect against influence-peddling by state and foreign governments.

Mueller Examining Trump’s Tweets in Wide-Ranging Obstruction Inquiry
MSN – Michael Schmidt and Maggie Haberman (New York Times) | Published: 7/26/2018

Special Counsel Robert Mueller is scrutinizing tweets and negative statements from President Trump about Attorney General Jeff Sessions and former FBI Director James Comey, according to people briefed on the matter. Several of the remarks came as Trump was also privately pressuring the men – both key witnesses in the inquiry – about the probe, and Mueller is examining whether the actions add up to attempts to obstruct the investigation by both intimidating witnesses and pressuring senior law enforcement officials to tamp down the inquiry. Mueller’s interest in them is the latest addition to a range of presidential actions he is investigating as a possible obstruction case, like misleading White House statements, public attacks, and possible pardon offers to potential witnesses.

From the States and Municipalities:

Alabama: Rep. Randy Davis Indicted on Bribery Charges
Montgomery Advertiser – Brian Lyman | Published: 7/25/2018

Alabama Rep. Randy Davis was indicted on charges of conspiracy and bribery over what prosecutors describe as an attempt to pressure Blue Cross Blue Shield (BCBS) to cover insulin therapies offered in health clinics in which he had a financial interest. The indictment accuses Davis of working with former Rep. Micky Hammon, an investor in the clinics, to recruit investors, from which he received finders’ fees. Prosecutors also accused Davis of trying to lobby BCBS on behalf of Trina Health, which operated the clinics. Later, the indictment alleges, Davis and Hammon worked together to push a bill through the 2016 legislative session that would have forced coverage of the insulin treatment offered at the clinics.

California: New Head of California Political Watchdog Agency Says It Is Moving on After Period of Tumult
Los Angeles Times – Patrick McGreevy | Published: 7/22/2018

Alice Germond is taking over an agency that has been mired in turmoil for months following a dispute between commissioners over the sharing of power. But the new chairperson of the California Fair Political Practices Commission said she has talked to the other commissioners and believes the panel can put the past behind them to focus on enforcing campaign finance laws ahead of the midterm elections in November. A power struggle in recent months pitted some part-time commissioners against the chairperson at the time, Jodi Remke, who they felt left them out of key decisions on budgets, personnel, legal issues, and policy changes.

Colorado: Colorado Campaign Finance Loophole Allows Dark Money Flyers
Colorado Independent – Sandra Fish | Published: 7/23/2018

Colorado’s campaign finance law has a loophole that allows printed literature, mailers, or other materials about candidates to be distributed without disclosing who paid for them if they do not include so-called magic words such as “vote for” or “vote against.” Colorado was one of only 10 states that did not require disclosure of an ad’s sponsor in the 2016 election cycle. It is a form of “dark money” that prevents voters from tracing who is behind a campaign message.

Florida: South Miami’s Mayor Shut Down an Opponent at Meetings. Now He Faces an Investigation.
Miami Herald – Aaron Leibowitz | Published: 7/18/2018

When Stephen Cody approached the podium at a South Miami commission meeting, Mayor Philip Stoddard had a good idea of what he might say. A few days earlier, a group that Cody created criticized Stoddard for the city’s firing of its former police chief and a resulting lawsuit. Stoddard refused to let Cody speak and demanded he first register as a lobbyist. When Cody returned to the commission the next month, without having registered, Stoddard again cut him off when he began to discuss the police chief’s firing. The county ethics commission ruled there was probable cause Stoddard had violated Cody’s “right to be heard” under the county’s Citizens’ Bill of Rights.

Georgia: Georgia State Rep. Jason Spencer to Resign in Wake of Sacha Baron Cohen Pants-Dropping Debacle
MSN – Meagan Flynn (Washington Post) | Published: 7/24/2018

Georgia Rep. Jason Spencer, who was fooled into repeatedly yelling a racial epithet on comedian Sacha Baron Cohen’s television show, intends to resign effective July 31. “Who Is America?” has pranked a long list of sitting and former lawmakers. In this segment, Cohen played an Israeli antiterrorism expert and Spencer was seen on camera dropping his pants, mocking a stereotypical Asian accent, and seemingly not requiring much coaxing to yell the racial epithet, spurring immediate outrage. Spencer lost in the primary in his bid for a fifth term and initially said he would serve out his final months, but calls for him to resign became too loud.

Illinois: Rauner Blasts Chicago Mayoral Candidate Willie Wilson’s Cash Giveaway, State Says He Didn’t Violate Campaign Rules
Chicago Tribune – John Byrne and Rick Pearson | Published: 7/23/2018

The Illinois State Board of Elections said Chicago mayoral candidate Willie Wilson’s handing out of nearly $200,000 in checks at a recent church event did not break campaign finance laws. A campaign spokesperson said Wilson gave the money to people to help them cover the cost of their property taxes and other expenses as part of his philanthropic work through the Dr. Willie Wilson Foundation, a registered nonprofit. “As far as we can see, it looks like he didn’t use campaign funds for this and there doesn’t appear to have been any quid pro quo, like, ‘Here’s some money, vote for me,'” said elections board spokesperson Matt Dietrich. “So, from our perspective, it doesn’t look like there was anything illegal about this.”

Indiana: Secret Donations to Fuel Hill’s Defense Against Groping Allegations
Indianapolis Star Tribune – Tony Cook, Kaitlin Lange, and Ryan Martin | Published: 7/23/2018

Supporters of Indiana Attorney General Curtis Hill have set up a legal fund to defend him against accusations that he inappropriately touched four women. Attorney Jim Bopp announced the creation of Fairness for Curtis Hill, a nonprofit 501(c)(3) organization formed to collect tax deductible funds for Hill’s defense. Some tax and campaign finance experts questioned whether the new fund could even operate as a charitable nonprofit under the law. Lloyd Hitoshi Mayer, a law professor at Notre Dame, said a 501(c)(3) charity cannot benefit one person. Usually defending public officials from allegations also is not considered charitable, he said. “The name alone should have been a red flag for the IRS,” Mayer said.

Maine: Ethics Commission to Delay Clean Elections Funding Until Court Ruling
Lewiston Sun Journal – Colin Ellis | Published: 7/25/2018

The Maine Commission on Governmental Ethics and Election Practices delayed action on Clean Elections in the hope that a court ruling on the matter might be issued soon but did not rule out the possibility of calling a special meeting should the money continue to be held back. Commissioners agreed it was unfair that certain candidates have not received funding ahead of the November election but said they were not in a position to release funding at this point. Gov. Paul LePage has refused to release $1.4 million in public funding for Clean Election candidates, and Republican House members have refused to fix a typographical error in the law that provides additional funds to be used this year.

Montana: Gov. Bullock Sues IRS Over Decision to Stop Requiring Some Tax-Exempt Groups to Identify Donors
Helena Independent Record – Amy Beth Hanson (Associated Press) | Published: 7/24/2018

Montana Gov. Steve Bullock sued the Internal Revenue Service and U.S. Treasury Department to stop them from removing requirements that politically active nonprofits disclose their donors’ identities. Bullock said the Trump administration failed to give proper notice of or seek public comment on changes to the decades-old rule requiring such disclosure. He is asking a federal judge to find the rollback illegal and set it aside. This is the third time in recent months that Bullock has inserted himself and Montana into national issues and continues his efforts in support of transparent elections.

New York: Who Needs Small Donors When You Have Friends? Ask Gov. Cuomo.
WRAL – Shane Goldmacher (New York Times) | Published: 7/17/2018

New York Gov. Andrew Cuomo has always relied on large donations to accumulate a $31.1 million campaign account. But even as he emerged as one of the Democratic Party’s most prolific fundraisers, he has all but ignored grassroots contributors. Now, mindful of the party’s insurgency, and facing a primary challenge from Cynthia Nixon, the governor has raced to find small donors. But disclosures revealed the extent to which Cuomo remains dependent on big donors, and some of the maneuvers undertaken to obscure that fact. One donor gave 69 times to Cuomo in the final days before the deadline – 67 of them one-dollar donations, driving down his average contribution size.

North Dakota: Anti-Corruption Measure Headed for North Dakota Ballot
West Fargo Pioneer – John Hageman | Published: 7/23/2018

North Dakota voters will decide whether to add anti-corruption language to the state’s constitution this fall. A ballot measure would prevent lobbyists from giving gifts to public officials and would establish an ethics commission that could investigate officials, candidates, and lobbyists. It would also prevent public officials from being a lobbyist while holding office and for two years after leaving their post. State lawmakers would be required to pass legislation mandating “public disclosure of the ultimate and true source of funds” spent to influence elections and government actions.

Ohio: Cincinnati Firm Lobbies for Taxpayers – and Companies That Want Their Money
Cincinnati Enquirer – Dan Horn | Published: 7/23/2018

Anne Sesler once acted as spokesperson for both FC Cincinnati and Hamilton County simultaneously. That is because Government Strategies Group, a firm for which Sesler is a consultant, is paid by both the county and the new Major League Soccer team to handle their lobbying and communications work. The county hired her in 2017 and the team hired her in January. Some say that is a conflict because the interests of FC Cincinnati and Hamilton County are not the same: FC Cincinnati needed $15 million last year for a stadium parking garage and taxpayers picked up the tab. And those are not the only Government Strategies clients with interests that sometimes overlap.

Pennsylvania: Board of Ethics Says Pro-Soda Tax Coalition Violated Lobbying Law
Philadelphia Business Journal – Alison Burdo | Published: 7/20/2018

The leading group that pushed for passage of Philadelphia’s controversial soda tax agreed to pay $8,000 in civil penalties after the Board of Ethics cited it for violations of the city’s lobbying law. Philadelphians for a Fair Future (PFF) formed in 2016 and raised more than $2 million to promote the tax, which was proposed by Mayor Jim Kenney. The board found the group gave incomplete information in required reports on its spending. In addition, four companies and individuals PFF employed to lobby failed to register as required.

Campaign Finance

California: County Won’t Name Everyone Who Broke Campaign Money Laws by Nick Gerda for Voice of OC

Illinois: Rauner Blasts Chicago Mayoral Candidate Willie Wilson’s Cash Giveaway, State Says He Didn’t Violate Campaign Rules by John Byrne and Rick Pearson for Chicago Tribune

Montana: Gov. Bullock Sues IRS Over Decision to Stop Requiring Some Tax-Exempt Groups to Identify Donors by Amy Beth Hansson (Associated Press) for Helena Independent Record

New York: Sugarman Cracks Down on Former-IDC Campaign Accounts by David Lombardo for Albany Times Union

Elections

National: There Is a Revolution on the Left. Democrats Are Bracing. by Alexander Burns (New York Times) for MSN

Ethics

National: Federal Judge Allows Emoluments Case Against Trump to Proceed by Ann Marimow, Jonathan O’Connell, and David Fahrenthold (Washington Post) for MSN

National: Wilbur Ross Actively Pushed to Add Citizenship Question to 2020 Census, Documents Show by Tara Bahrampour (Washington Post) for San Francisco Chronicle

Illinois: Lawmakers Question Possible Conflicts of Interest in Tollway Contracts by Mary Wisniewski for Chicago Tribune

Lobbying

National: Two Trump Allies, Seeing Unlimited Opportunity, Instead Drew Scrutiny by Kenneth Vogel, Mark Mazzetti, Maggie Haberman, and David Kirkpatrick (New York Times) for MSN

Pennsylvania: Board of Ethics Says Pro-Soda Tax Coalition Violated Lobbying Law by Alison Burdo for Philadelphia Business Journal

Redistricting

National: Drive Against Gerrymandering Finds New Life in Ballot Initiatives by Michael Wines (New York Times) for MSN

After gathering 38,451 signatures, an anti-corruption measure will appear on the November 6 ballot in North Dakota.

If the measure is approved by voters, the ethics commission will be responsible for adopting rules related to elections, lobbying, and for reporting and investigating alleged violations of those rules and related state laws.

Additionally, the measure prohibits gifts from lobbyists, prohibits the delivery of campaign contributions by lobbyists, and creates a revolving door provision banning public officials from becoming lobbyists for two years after leaving office.

This is the first ballot measure to receive enough signatures to appear in front of voters this November.

Campaign Finance

National: “Tabloid Company, Aiding Trump Campaign, May Have Crossed Line into Politics” by Jim Rutenberg and Ben Protess (New York Times) for MSN

Elections

Georgia: “She’s Mexican-Born and a New U.S. Citizen. But Can She Run for the Georgia House?” by Richard Fausett (New York Times) for WRAL

Ethics

California: “New Head of California Political Watchdog Agency Says It Is Moving on After Period of Tumult” by Patrick McGreevy for Los Angeles Times

Florida: “Secret Tapes Reveal Undercover FBI Agents Trying to Take Down Hallandale Mayor” by Susannah Bryan for South Florida Sun Sentinel

Maryland: “Howard County Studies Loosening Some Ethics Law Reporting Rules” by Kate Magill for Baltimore Sun

Lobbying

National: “Busy Trump, Congress Keep K Street Booming” by Megan Wilson for The Hill

Ohio: “Cincinnati Firm Lobbies for Taxpayers – and Companies That Want Their Money” by Dan Horn for Cincinnati Enquirer

Pennsylvania: “PPA Lobbyist Paid $3,000 a Month. For What?” by William Bender for Philadelphia Inquirer

Gov. Bill Walker signed significant legislative ethics reforms into law on July 19.

House Bill 44 prohibits lobbyists from buying meals or alcoholic drinks for legislators, requires legislators to receive prior approval for travel abroad that is paid for by the state, and mandates legislators to disclose conflicts of interest on which they are voting when there is something financial at stake for themselves or immediate family members.

The legislative ethics reform ballot initiative has been taken off the fall ballot because the bill and initiative have been deemed substantially similar.

The bill went into effect immediately.

Check it out! Elizabeth Bartz is introducing NYCU Video Digest! Get this weeks news including lobbying reforms, state medicaid expansion, and campaign finance reforms in less than 2 & 1/2 minutes!

Federal:

Alleged Russian Agent Ordered to Remain in Custody After Prosecutors Argue She Has Ties to Intel Agency
MSN – Tom Jackman and Rosalind Helderman (Washington Post) | Published: 7/18/2018

A Russian national arrested on charges of acting as an illegal foreign agent was in contact with Russian intelligence services, federal prosecutors argued, offering details about what they say was a wide-ranging influence campaign in the U.S. The court filings add to the portrait of Maria Butina, who the Justice Department says worked covertly to establish back-channel lines of communication to the Kremlin and infiltrate American political organizations, including the National Rifle Association, and gather intelligence for a senior Russian official. Prosecutors also alleged she had a personal relationship with an American political operative and offered sex to another person in exchange for a position with a special interest organization.

From the Start, Trump Has Muddied a Clear Message: Putin interfered
MSN – David Sanger and Matthew Rosenberg (New York Times) | Published: 7/18/2018

Before his inauguration, Donald Trump was shown highly classified intelligence indicating Russian President Vladimir Putin had personally ordered cyberattacks to sway the 2016 American election. The evidence included texts and emails from Russian military officers and information gleaned from a top-secret source close to Putin, who had described to the CIA how the Kremlin decided to execute its campaign of hacking and disinformation. Trump sounded grudgingly convinced, according to several people who attended the briefing. But ever since, Trump has tried to cloud the clear findings he received on January 6, 2017, which his own intelligence leaders have unanimously endorsed.

IRS Will No Longer Require Certain Nonprofits to Disclose Large Donors
WRAL – Patricia Cohen, Kenneth Vogel, and Jim Tankersley (New York Times) | Published: 7/17/2018

The U.S. Treasury Department will no longer force some tax-exempt organizations to identify their donors. The new rule will affect labor unions, social clubs, trade organizations, and politically active advocacy groups. The names of donors to these nonprofit groups have not been publicly available, but the organizations were required to disclose the information to the IRS. These groups generally do not operate as charities, however, and their donors do not receive tax deductions in exchange for their contributions. As a result, Treasury Secretary Steven Mnuchin said the IRS does not need their donor information to police tax laws.

From the States and Municipalities:

Arizona: Arizona Rep. Paul Mosley Accused of Inappropriate Comments Involving Women, Religion
Arizona Republic – Rachel Leingang and Yvonne Winget Sanchez | Published: 7/16/2018

Arizona Rep. Paul Mosley made inappropriate comments about marital status, working mothers, and religion to several people at the Capitol while they were working, lawmakers and lobbyists said. Mosley, who has come under fire after reports of excessive speeding, has asked whether people are married, why they do not have children, and why working mothers are not, instead, home with their children. The recollections of encounters with Mosley come as the statehouse continues to grapple with a culture that some have deemed sexist and demeaning toward women. And some lawmakers have said they are uncomfortable with Mosley’s aggressive manner in pushing for legislation, some of which could personally benefit him.

Arizona: Mistrial Declared in Bribery Case Involving Arizona Corporation Commission
Arizona Republic – Michael Kiefer and Ryan Randazzo | Published: 7/17/2018

The influence-peddling trial of former Arizona Corporation Commissioner Gary Pierce ended in a mistrial after jurors deadlocked on charges he accepted bribes from a water company owner in exchange for favorable regulatory decisions. A mistrial also was declared for Pierce’s wife, Sherry, water company owner George Johnson, and lobbyist Jim Norton. Prosecutors alleged Gary Pierce helped pass a rate increase and a beneficial tax policy for Johnson Utilities in exchange for $31,500 paid to his wife. The payments were made under the guise of consulting work and were funneled through the office of Norton’s wife. The indictment also alleged Johnson was going to fund the purchase of real estate worth $350,000 for Gary Pierce. Norton, who lobbied on Johnson’s behalf, was accused of facilitating the bribery scheme.

California: State Supreme Court Removes Measure to Split California into Three States from November Ballot
Los Angeles Times – Maura Dolan | Published: 7/18/2018

The California Supreme Court blocked a proposal to split California into three states from appearing as a ballot measure in November. The proposal, championed by venture capitalist Tim Draper, had gathered at least 600,000 signatures which was enough to earn a spot on the ballot. “We conclude that the potential harm in permitting the measure to remain on the ballot outweighs the potential harm in delaying the proposition to a future election,” the court wrote. The justices also agreed to rule eventually on the measure’s constitutionality, a ruling that is likely to go against the initiative.

Florida: ‘Look Right into My Soul,’ Michael Grieco Said. But He Was Lying, Ethics Board Alleges
Miami Herald – Nicholas Nehamas | Published: 7/18/2018

The Miami-Dade Commission on Ethics and Public Trust found probable cause to charge Michael Grieco with two counts of violating a county charter provision that prohibits municipal officials from “knowingly furnish[ing] false information on any public matter.” The commission also said Grieco broke a Miami Beach ordinance against soliciting city vendors for campaign funds. The ethics panel claims Grieco, a former Miami Beach commissioner, was lying to the public when he denied involvement in a campaign fundraising operation last year and asked Miami Herald reporters to “look right into [his] soul” for the truth, which is a violation of the charter’s “truth in government” provision.

Maryland: As Governor, Larry Hogan’s Real Estate Business Continues to Thrive – Prompting Questions
Baltimore Sun – Luke Broadwater | Published: 7/12/2018

While Maryland Gov. Larry Hogan stepped aside from his firm, Hogan Companies, and turned his assets over to be managed by a trust when he took office, the governor has continued to profit. Hogan released tax returns that show he has made about $2.4 million in corporate earnings while governor. According to a review of financial disclosure forms, his corporate holdings include stakes in commercial real estate deals as well as residential and retail developments around Maryland. As Hogan seeks a second term, this arrangement has drawn criticism from Democrats, and renewed a debate about the lengths to which businesspeople-turned-politicians should wall themselves off from their private enterprises.

Massachusetts: Walsh Vetoes City Lobbying Rules, Calling Proposal ‘Inadequate’
Boston Globe – Milton Valencia | Published: 7/12/2018

Boston Mayor Martin Walsh vetoed an ordinance that would have amended the city’s lobbying law. The mayor said the reforms failed to properly define and regulate lobbying, as well as create a proper enforcement mechanism. He sent back his own versions of both the local ordinance, with revised enforcement provisions, and a home rule petition, with what he called clearer definitions of lobbying. In his veto, Walsh scrapped the council’s attempts to provide exemptions for lawyers representing residents on routine matters before a city board. The mayor called for having anyone who does any lobbying work to register, which has already caused pause among council members.

Montana: Report: Rosendale uses accounting to skirt contribution limits
Helena Independent Record – Holly Michels | Published: 7/12/2018

U.S. Senate candidate Matt Rosendale used excess donations from wealthy Republican donors to pay himself back for personal loans from a previous congressional run, then he turned around and loaned that money right back to his Senate campaign, according to campaign records. That accounting shuffle has given Rosendale a way to fund his campaign against incumbent U.S. Sen. Jon Tester with money given by donors above the individual campaign contribution limits. Campaign finance watchdogs said Thursday that what Rosendale is doing is unusual but legal, and effectively raises contribution limits from $5,400 to $8,000 for some donors.

New York: Architect of Cuomo’s Buffalo Billion Project Is Convicted in Bid-Rigging Scheme
WRAL – Benjamin Weiser and Jesse McKinley (New York Times) | Published: 7/12/2018

A federal jury convicted key players on charges related to Gov. Andrew Cuomo’s “Buffalo Billion” economic redevelopment program. The trial put a spotlight on how lucrative contracts worth hundreds of millions of dollars were awarded for redevelopment projects aimed at revitalizing upstate New York. Alain Kaloyeros, the former president of the State University of New York’s Polytechnic Institute, and his co-defendants were accused of working together to rig the open-bidding process for lucrative contracts to make sure they went to LPCiminelli and COR Development. The convictions were the latest in a string of guilty verdicts in federal corruption trials focused on state officials.

New York: Guilty, Again: Dean Skelos, former Senate leader, is convicted of corruption in retrial
WRAL – Vivian Wang (New York Times) | Published: 7/17/2018

Former New York Senate Majority Leader Dean Skelos was found guilty of using his influence to get his son jobs and payments worth hundreds of thousands of dollars. Skelos and his son, Adam, were convicted on eight counts of corruption. Dean Skelos was accused of using his influence to steer hundreds of thousands of dollars to his son through payments and low-show jobs from AbTech Industries and another company. The elder Skelos later leaned on Nassau County officials to award AbTech a $12 million contract. Dean and Adam Skelos were convicted in 2015, but those verdicts were overturned after the U.S. Supreme Court limited the definition of public corruption. Prosecutors were allowed to retry the pair under the narrowed definition.

North Carolina: Top State Leaders Fined for Illegal Campaign Contributions from Drug Company
Raleigh News and Observer – Colin Campbell | Published: 7/13/2018

Thirty-seven candidates in North Carolina were fined for accepting illegal campaign contributions from Pfizer’s PAC. The donations totaled $53,500 and were dated during the legislative session, when PACs are prohibited from giving to state office holders or candidates seeking those offices. Most of the illegal Pfizer contributions occurred in June 2016 and October 2017, when the Legislature held a special session. Each campaign must forfeit the amount of the donation, and Pfizer must pay a $53,500 fine. House Speaker Tim Moore’s treasurer wrote in a letter to the state elections board that the campaign was unaware the Pfizer checks were dated during the session because they were received after it ended.

Virginia: New Virginia Business Aims to Be Kickstarter for Political Influence
The Virginian-Pilot – Katherine Hafner | Published: 7/12/2018

A startup aims to be a sort of Kickstarter for political influence. Crowdlobby, the brainchild of University of Richmond law school graduates, recently raised $35,000 and plans to launch within the next few months. Citizens will be able to log on and contribute to an issue they care about. It has to be a specific legislative fix, not an overarching topic like education reform. Once a minimum is reached – $50,000 at the state level, $200,000 in Washington, D.C. – Crowdlobby hires a lobbyist on the donors’ behalf. Heidi Drauschak got the idea after working at a prominent Richmond lobbying firm. “I was incredibly impressed with the tool that lobbying was … but because of the price tag, the average person never considers it as an option,” Drauschak said.

Wisconsin: Questions Raised About Payment Made by Lawyer to Randy Bryce’s Ex-Girlfriend
Milwaukee Journal Sentinel – Mary Spicuzza | Published: 7/16/2018

Congressional candidate Randy Bryce owed money to his ex-girlfriend for more than a decade. That debt, which totaled about $4,200 by late last year, has since been paid. What is unclear is exactly who paid it. Bryce’s former girlfriend said last November that she was surprised when she received the check for $4,245.73. But it turns out the check was not from Bryce – it came from the law firm Halling & Cayo. The donation limit for congressional candidates is $2,700 per election, and candidates are prohibited from using campaign funds for personal use. Corporations are prohibited from making contributions to federal candidates.

Campaign Finance

National: “I.R.S. Will No Longer Force Kochs and Other Groups to Disclose Donors” by Jim Tankersley and Patricia Cohen (New York Times) for WRAL

Connecticut: “Connecticut Democrats Lose Their Gubernatorial Rainmaker” by Mark Pazniokas for Connecticut Mirror

Iowa: “Iowa Ethics Board Says Candidates Can’t Use Campaign Funds for Child Care” by Katarina Sostaric for Iowa Public Radio

North Carolina: “Top State Leaders Fined for Illegal Campaign Contributions from Drug Company” by Colin Campbell for Raleigh News and Observer

Wisconsin: “Questions Raised About Payment Made by Lawyer to Randy Bryce’s Ex-Girlfriend” by Mary Spicuzza for Milwaukee Journal Sentinel

Ethics

New York: “Ex-New York Senator and Son Convicted of Extortion, Bribery” by Tom Hayes for Associated Press

West Virginia: “Employee Lists Concerns About Justices” by Lacie Pierson for Huntington Herald-Dispatch

Lobbying

Canada: “Lobbying Commissioner Rejects Complaints Against Firearms Panel Member” by Jim Bronskill (Canadian Press) for Times Colonist

Virginia: “Watchdog Group Says McGuireWoods Utilized Weak Va. Law by Hiring Former Speaker” by Patrick Wilson for Richmond Times-Dispatch